Gartner Research says SAP`s message for 2004 is that SAP Netweaver integration technology can be used to extend existing SAP applications to incorporate non-SAP applications.
"It`s a complex message," says Derek Prior, a Gartner research director. "One of SAP`s biggest challenges will be having enough senior architects who can cross the technology boundary effectively and articulate the value proposition in a clear way, although this is difficult for an organisation like SAP, which is very product-based."
Netweaver will provide a broader set of integration technologies all integrated into one software infrastructure, explains Prior. "Netweaver consists of a combination of a Web-based application server as a run time environment to all SAP applications in future, plus three core integration technologies."
Prior says the challenge is to develop the capability to present an overall view to the general market as well as being able to sit down with individual customers and show how the value proposition would make sense for their business. He says one of the ways SAP is meeting this challenge is through planning to develop much closer relationships with customers.
"We at Gartner are increasingly drawn into the discussion of trying to explain the impact to customers," reflects Prior. "I think more and more customers need help in understanding the impact and value proposition of these technologies in bridging the business technology divide."
At a recent Gartner conference at Sun City, it emerged that like their international counterparts, local users are expected to do more with less. Prior says this means they have to look at the value proposition of new technologies as well as demonstrate cost reduction and prove return on previous investments.
"Local SAP users say while SAP has enabled them to standardise business processes, achieve business strategies, and simplify application architectures, one of the greatest remaining needs is to be able to measure and prove the actual return on investment of SAP implementations."
Prior concludes that although difficult, it is not impossible to demonstrate return on investment. "There are individual customer examples of cases of enlightened customers who have been able to overcome challenges and to their own satisfaction, at least, have been able to verify the key performance indicators and the overall payback."
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